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In an effort to expedite the expansion of the Dangote Petroleum Refinery & Petrochemicals from 650,000 barrels per day to 1.4 million barrels per day, the Dangote Group has inked a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd., one of China’s top producers of construction machinery. This agreement will position the refinery to become the largest in the world.
Through the arrangement, the Group will be able to purchase a greater variety of cutting-edge construction equipment to support current and upcoming projects in the fields of agricultural, petrochemicals, refining, and large-scale infrastructure development. The expansion of the refinery, which is anticipated to be finished in three years, will be complemented by the new equipment.
In addition to refining, the expansion program will boost the output of polypropylene from 900,000 metric tonnes year to 2.4 million metric tonnes annually. Together with Ethiopia’s 3 million metric tonnes of urea capacity annually, Nigeria’s urea production will be treble from 3 million to 9 million metric tonnes annually, solidifying the Group’s position as the world’s largest urea producer.
The Group will become the largest producer in Africa and improve supplies to the detergent and cleaning agent manufacturing sector by increasing its production capacity for Linear Alkyl Benzene (LAB) to 400,000 metric tons annually. The larger expansion scheme also includes more capacity for producing base oil.
The Group said in a statement that the deal was a strategic investment meant to expand its building footprint and accelerate its goal of creating a $100 billion business by 2030.
“The extra equipment we are purchasing as part of this collaboration will greatly improve project execution across the board. We are setting ourselves up to become the world’s top construction company with this investment,” the statement read.
As it works toward its long-term goal of creating a $100 billion company by 2030, Dangote Group is now speeding up market development and expansion in regional areas.
